Financial Industry

The financial services market grew at a compound annual growth rate (CAGR) of 7.7%, from $31.1 trillion in 2023 to $33.5 trillion in 2024. The industry is forecast to grow at a CAGR of 7.6% to reach $44.9 trillion in 2028.

The global accounting services sector continues to grow steadily, up from $652.32 billion in 2023 to $676.73 billion in 2024 at a compound annual growth rate (CAGR) of 3.7%. The market is forecast to see this growth continue in the next few years, surging at a CAGR of 4.4% to reach$804.27 billion in 2028. 

Fintech Investment

Deal activity continues to heat up in the cryptocurrency space as the adoption of crypto becomes more mainstream. Last year was a huge year for cryptocurrencies. In 2021, the price of bitcoin was up 49%, Ether was up 390%, and Dogecoin was up a whopping 1,600%. The M&A market for cryptocurrency soared by nearly 5,000% last year. But this is nothing compared to the activity for M&A of crypto companies.

The global fintech market was valued at $6.5 trillion in 2021 and is estimated to grow at a compound annual growth rate (CAGR) of 13.9% between 2022 and 2028 to reach $16.65 trillion.

The Global Market

The other financial services market is a multi-billion-dollar industry that is on pace for continued growth, extreme transformation, and abundant opportunity.

Decentralized finance, also known as DeFi, makes financial products available to anyone on a decentralized blockchain network. Through this relatively new software system, all parties can interact directly through applications, eliminating a need for middlemen such as banks or institutions to facilitate transactions. It also eliminates a need for proof of identification or age requirements that banks typically require. There is no need for anyone to know anyone else’s identity. Everything occurs over a public blockchain, using smart contracts, which are bits of code that execute specified actions once certain criteria have been met. It’s based on mutual trust and strict privacy.

As the world still faces the COVID-19 pandemic, businesses in the financial services sectors are preparing themselves for life after coronavirus. This includes the management of credit risk for borrowers, and turning to digital strategies to drive revenue growth.

New technologies are constantly reshaping industries, and global investment banking is not immune to these impacts, as newfinancial startups create technologies that cut into the relationship-based work that investment banks do.In order to continue to thrive, the big investment banks must keep up with innovation.

The trillion-dollar commercial banking industry is always evolving, dealing with constant regulatory adjustments, scrutiny, and competition. Numerous factors impact the sector, such as changing customer behaviors and preferences, macroeconomic cycles, data protection, cybersecurity and privacy, and the current political climate.

Despite major political disruption from events such as Britain leaving the EU and the election of a new president of the United States, 2016 is gearing up to be the biggest year for M&A deal announcements since 2007.

Despite uncertainty surrounding Britain’s decision to leave the European Union in June, the British Fintech sector continues to grow and a flurry of M&A activity made last month one of the sector’s busiest months yet.